Revenue for the second quarter of 2015 was $182.3 million, compared to
$178.5 million for the same period last year;

GAAP net loss for the second quarter was $22.9 million, or ($0.55) per
diluted share, compared to GAAP net loss of $173,000, or ($0.00) per
diluted share, for the same period last year.

Non-GAAP net income for the second quarter was $8 million, or $0.15
per diluted share, compared to non-GAAP net income of $28.0 million,
or $0.55 per diluted share, reported for the same period last year.

The Company invested a net amount of $22.5 million in R&D projects
(non-GAAP basis) during the second quarter, representing 12% of
revenues.

The Company used $15.6 million in cash for operations during the
second quarter, and currently holds approximately $502.6 million in
cash and cash equivalents, and short term bank deposits. The cash
balance includes a $175 million drawdown on the Company's revolving
credit facility.

Non-GAAP EBITDA for the second quarter amounted to $12.1 million.

The Company sold 6,731 3D printing and additive manufacturing systems
during the second quarter, and has sold a total of 135,928 systems
worldwide as of June 30, 2015, on a pro forma combined basis.

"The merger between Stratasys and Objet in 2012 created synergies that
combined with the heightened level of mainstream media attention within
our industry, have contributed to a period of extraordinary growth for
our company and industry over the past two years," said David Reis,
chief executive officer of Stratasys. "We believe our industry is
transitioning through a period of slower growth, as users digest their
investments in 3D printing and expand the utilization of recently
acquired capacity. Despite these headwinds, and certain ongoing
macroeconomic challenges in Asia, we are encouraged by sequential
improvement in areas of our business, and remain optimistic about our
longer-term growth prospects."

Business Highlights:

Strengthened presence in Germany, Switzerland, and Austria through the
acquisition of a key German channel partner, RTC Rapid Technologies
GmbH; and made additional North American channel enhancements with the
addition of W.D. Distributing, WYNIT, and Sam's Club.

Enhanced high-end system capabilities with release of the Objet1000
Plus 3D Production System, providing significant speed improvements;
as well as introduced a new high-volume filament packaging solution
for Fortus 3D Production Systems.

Observed significant expansion within the dental vertical, including
the further adoption of our Stratasys PolyJet based solutions for the
production of custom-made orthodontic products.

Announced a multi-year collaboration with the Kangshua Group that
includes providing up to 1,000 Solidscape high precision 3D printers
to equip multiple new service bureaus and innovation centers in China;
as well as the opening of a manufacturing facility, by Kangshua, to
locally assemble Solidscape 3D printers for the Chinese market.

Reorganized the MakerBot channel in Europe and Asia to help leverage
the existing Stratasys go-to-market infrastructure within those
regions.

Completed a customer event for Stratasys Direct Manufacturing (SDM)
that reached 239 customers and introduced the combined SDM
organization as a total solution provider that focuses on applications
from prototype to production.

"We are observing positive indicators and are beginning to see tangible
results that reaffirm our strategy of developing targeted solutions
within key market verticals," continued Reis. "Short-term, we will
continue to make adjustments to our expenses to align with current
market conditions. Long-term, we remain committed to our growth
initiatives that include enhancing vertical solution capabilities,
expanding customer support services, accelerating product development,
and growing the sales and marketing infrastructure - all of which are
designed to drive future growth."

2015 Guidance

Due to the Company's limited visibility regarding the timing of
improvements in growth, the Company has withdrawn its previously
delivered full year 2015 financial guidance, and instead has provided
financial guidance for the third quarter of 2015 as follows:

Total revenue in the range of $175 to $190 million, with non-GAAP net
income in the range of $1.5 to $7.0 million, or $0.03 to $0.13 per
diluted share.

GAAP net loss of $27.0 million to $22.5 million, or ($0.52) to ($0.43)
per share.

Non-GAAP earnings guidance excludes $18 million of projected
amortization of intangible assets; $9.5 million to $10.0 million of
share-based compensation expense; $7 million to $8 million in
non-recurring expenses related to acquisitions; and includes $6.0
million to $6.5 million in tax expenses related to non-GAAP
adjustments.

Stratasys Ltd. Q2-2015 Conference Call Details

Stratasys will hold a conference call to discuss its second quarter
financial results on July 30, 2015 at 8:30 a.m. (ET).

To participate by telephone, the domestic dial-in number is 800-901-5241
and the international dial-in is 617-786-2963. The access code is
55067799.

Investors are advised to dial into the call at least ten minutes prior
to the call to register. The webcast will be available for 90 days on
the "Investors" page of the Stratasys Web site or by accessing the
provided web address.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements in this press are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995,
Section 27A of the Securities Act of 1933, and Section 21E of the
Securities Exchange Act of 1934. Forward-looking statements are
characterized by the use of forward-looking terminology such as "will,"
"expects," "anticipates," "continues," "believes," "should," "intended,"
"projected," "guidance," "preliminary," "future," "planned,"
"committed," and other similar words. These forward-looking statements
include, but are not limited to, statements relating to the company's
objectives, plans and strategies, statements of preliminary or projected
results of operations or of financial condition and all statements that
address activities, events or developments that the company intends,
expects, projects, believes or anticipates will or may occur in the
future. Forward-looking statements are not guarantees of future
performance and are subject to risks and uncertainties. The company has
based these forward-looking statements on assumptions and assessments
made by its management in light of their experience and their perception
of historical trends, current conditions, expected future developments
and other factors they believe to be appropriate. Important factors that
could cause actual results, developments and business decisions to
differ materially from those anticipated in these forward-looking
statements include, among other things: the company's ability to
efficiently and successfully integrate the operations of Stratasys, Inc.
and Objet Ltd. after their merger as well as MakerBot, Solid Concepts,
and Harvest Technologies after their acquisitions and to successfully
put in place and execute an effective post-merger integration plans; the
overall global economic environment; the impact of competition and new
technologies; general market, political and economic conditions in the
countries in which the company operates; projected capital expenditures
and liquidity; changes in the company's strategy; government regulations
and approvals; changes in customers' budgeting priorities; litigation
and regulatory proceedings; the company's ability to satisfy the
financial covenants under its revolving credit facility; and those
factors referred to under "Risk Factors", "Information on the Company",
"Operating and Financial Review and Prospects", and generally in the
company's annual report on Form 20-F for the year ended December 31,
2014 filed with the U.S. Securities and Exchange Commission (the "SEC"),
and in other reports that the company has filed with or furnished to the
SEC on the date hereof. Readers are urged to carefully review and
consider the various disclosures made in the company's SEC reports,
which are designed to advise interested parties of the risks and factors
that may affect its business, financial condition, results of operations
and prospects. Any guidance and other forward-looking statements in this
press release are made as of the date hereof, and the company undertakes
no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, except as required by law.

Non-GAAP Discussion Disclosure

The information discussed within this release includes financial results
and projections that are in accordance with accounting principles
generally accepted in the United States of America (GAAP). In addition,
certain non-GAAP financial measures have been provided excluding certain
charges, expenses and income. The non-GAAP measures should be read in
conjunction with the corresponding GAAP measures and should be
considered in addition to, and not as an alternative or substitute for,
the measures prepared in accordance with GAAP. The non-GAAP financial
measures are included in an effort to provide information that investors
may deem relevant to evaluate results from the company's core business
operations and to compare the company's performance with prior periods.
The non-GAAP financial measures primarily identify and exclude certain
discrete items, such as merger-related expenses, amortization of
intangible assets, one time write off of deferred tax assets, impairment
charges, reorganization and other related costs, and expenses associated
with share-based compensation required under ASC 718. The company uses
these non-GAAP financial measures for evaluating comparable financial
performance against prior periods.

Stratasys Ltd. (Nasdaq:SSYS), headquartered in Minneapolis, Minnesota
and Rehovot, Israel, is a leading global provider of 3D printing and
additive manufacturing solutions. The company's patented FDM® and
PolyJet™ 3D Printing technologies produce prototypes and manufactured
goods directly from 3D CAD files or other 3D content. Systems include 3D
printers for idea development, prototyping and direct digital
manufacturing. Stratasys subsidiaries include MakerBot and Solidscape,
and the company operates the digital parts manufacturing service
Stratasys Direct Manufacturing. Stratasys has more than 2,900 employees,
holds over 800 granted or pending additive manufacturing patents
globally, and has received more than 30 awards for its technology and
leadership. Online at: http://www.stratasys.com
or http://blog.stratasys.com.

Stratasys Ltd.

Consolidated Balance Sheets

(in thousands)

June 30,

December 31,

2015

2014

ASSETS

Current assets

Cash and cash equivalents

$

352,268

$

442,141

Short-term bank deposits

150,370

595

Accounts receivable, net

136,970

150,806

Inventories

137,394

123,385

Net investment in sales-type leases

10,091

8,170

Prepaid expenses

9,898

7,931

Deferred income taxes

30,567

25,697

Other current assets

31,420

37,903

Total current assets

858,978

796,628

Non-current assets

Goodwill

1,172,125

1,323,502

Other intangible assets, net

517,085

597,903

Property, plant and equipment, net

185,992

157,036

Net investment in sales-type leases - long term

19,093

14,822

Other non-current assets

10,960

9,216

Total non-current assets

1,905,255

2,102,479

Total assets

$

2,764,233

$

2,899,107

LIABILITIES AND EQUITY

Current liabilities

Accounts payable

$

40,687

$

37,359

Short term debt

175,000

50,000

Accrued expenses and other current liabilities

50,990

47,760

Accrued compensation and related benefits

45,230

42,332

Obligations in connection with acquisitions

12,003

28,092

Deferred revenues

48,821

45,023

Total current liabilities

372,731

250,566

Non-current liabilities

Obligations in connection with acquisitions - long term

12,761

26,461

Deferred tax liabilities

36,293

55,835

Deferred revenues - long-term

6,069

5,946

Other non-current liabilities

26,677

25,091

Total non-current liabilities

81,800

113,333

Total liabilities

454,531

363,899

Redeemable non-controlling interests

2,564

3,969

Equity

Ordinary shares, NIS 0.01 nominal value, authorized 180,000

shares; 51,669 and 50,923 shares issued and outstanding

at June 30, 2015 and December 31, 2014, respectively

140

139

Additional paid-in capital

2,587,168

2,568,149

Accumulated deficit

(273,090

)

(33,871

)

Accumulated other comprehensive loss

(7,429

)

(3,647

)

Equity attributable to Stratasys Ltd.

2,306,789

2,530,770

Non-controlling interest

349

469

Total equity

2,307,138

2,531,239

Total liabilities and equity

$

2,764,233

$

2,899,107

Stratasys Ltd.

Consolidated Statements of Operations

(in thousands, except per share data)

Three Months Ended June 30,

Six Months Ended June 30,

2015

2014

2015

2014

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Net sales

Products

$

134,490

$

154,090

$

261,157

$

283,342

Services

47,832

24,375

93,896

46,064

182,322

178,465

355,053

329,406

Cost of sales

Products

67,666

73,394

166,037

134,416

Services

31,748

13,437

60,020

25,628

99,414

86,831

226,057

160,044

Gross profit

82,908

91,634

128,996

169,362

Operating expenses

Research and development, net

25,506

18,957

52,744

35,728

Selling, general and administrative

97,581

77,929

200,189

145,546

Goodwill impairment

-

-

150,400

-

Change in the fair value of obligations in connection with
acquisitions

(6,680

)

628

(19,936

)

(6,867

)

116,407

97,514

383,397

174,407

Operating loss

(33,499

)

(5,880

)

(254,401

)

(5,045

)

Financial income (expense)

(711

)

337

(5,835

)

(999

)

Loss before income taxes

(34,210

)

(5,543

)

(260,236

)

(6,044

)

Income tax benefit

(11,066

)

(5,370

)

(20,688

)

(9,958

)

Net income (loss)

(23,144

)

(173

)

(239,548

)

3,914

Net loss attributable to non-controlling interest

(213

)

-

(329

)

-

Net income (loss) attributable to Stratasys Ltd.

$

(22,931

)

$

(173

)

$

(239,219

)

$

3,914

Net income (loss) per ordinary share attributable to Stratasys
Ltd.

Basic

$

(0.48

)

$

(0.00

)

$

(4.71

)

$

0.08

Diluted

(0.55

)

(0.00

)

(4.77

)

0.08

Weighted average ordinary shares outstanding

Basic

51,405

49,373

51,181

49,323

Diluted

51,870

49,373

51,413

51,238

Stratasys Ltd.

Reconciliation of GAAP to Non-GAAP Results of Operations

(in thousands, except per share data)

Three Months Ended June 30, 2015

Three Months Ended June 30, 2014

GAAP

Non-GAAP

GAAP

Non-GAAP

(unaudited)

Adjustments*

(unaudited)

(unaudited)

Adjustments*

(unaudited)

Net sales

Products

$

134,490

$

-

$

134,490

$

154,090

$

-

$

154,090

Services

47,832

-

47,832

24,375

-

24,375

182,322

-

182,322

178,465

-

178,465

Cost of sales

Products

67,666

(15,975

)

51,691

73,394

(14,739

)

58,655

Services

31,748

(841

)

30,907

13,437

(340

)

13,097

99,414

(16,816

)

82,598

86,831

(15,079

)

71,752

Gross profit

82,908

16,816

99,724

91,634

15,079

106,713

Operating expenses

Research and development, net

25,506

(3,016

)

22,490

18,957

(1,318

)

17,639

Selling, general and administrative

97,581

(24,020

)

73,561

77,929

(17,617

)

60,312

Change in the fair value of obligations in connection with
acquisitions

(6,680

)

6,680

-

628

(628

)

-

116,407

(20,356

)

96,051

97,514

(19,563

)

77,951

Operating income (loss)

(33,499

)

37,172

3,673

(5,880

)

34,642

28,762

Financial income (expense)

(711

)

-

(711

)

337

-

337

Income (loss) before income taxes

(34,210

)

37,172

2,962

(5,543

)

34,642

29,099

Income taxes (benefit)

(11,066

)

6,279

(4,787

)

(5,370

)

6,475

1,105

Net income (loss)

(23,144

)

30,893

7,749

(173

)

28,167

27,994

Net loss attributable to non-controlling interest

(213

)

-

(213

)

-

-

-

Net income (loss) attributable to Stratasys Ltd.

$

(22,931

)

$

30,893

$

7,962

$

(173

)

$

28,167

$

27,994

Net income (loss) per ordinary share attributable to Stratasys
Ltd.

Basic

$

(0.48

)

$

0.15

$

(0.00

)

$

0.57

Diluted

(0.55

)

0.15

(0.00

)

0.55

Weighted average ordinary shares outstanding

Basic

51,405

51,405

49,373

49,373

Diluted

51,870

52,705

49,373

51,196

The Company considers these non-GAAP measures to be indicative of
its core operating results and facilitates a comparison of
operating results across reporting periods. The Company uses these
non-GAAP measures when evaluating its financial results as well as
for internal planning and forecasting purposes, however these
measures should not be viewed as a substitute for the Company's
GAAP results.

* Refer to the "Reconciliation of Non-GAAP Adjustments" herein for
further information regarding adjustments.

Stratasys Ltd.

Reconciliation of GAAP to Non-GAAP Results of Operations

(in thousands, except per share data)

Six Months Ended June 30, 2015

Six Months Ended June 30, 2014

GAAP

Adjustments*

Non-GAAP

GAAP

Adjustments*

Non-GAAP

Net sales

Products

$

261,157

$

-

$

261,157

$

283,342

$

235

$

283,577

Services

93,896

-

93,896

46,064

-

46,064

355,053

-

355,053

329,406

235

329,641

Cost of sales

Products

166,037

(61,887

)

104,150

134,416

(28,468

)

105,948

Services

60,020

(2,250

)

57,770

25,628

(774

)

24,854

226,057

(64,137

)

161,920

160,044

(29,242

)

130,802

Gross profit

128,996

64,137

193,133

169,362

29,477

198,839

Operating expenses

Research and development, net

52,744

(5,833

)

46,911

35,728

(2,813

)

32,915

Selling, general and administrative

200,189

(56,864

)

143,325

145,546

(31,140

)

114,406

Goodwill impairment

150,400

(150,400

)

-

-

-

-

Change in the fair value of obligations in connection with
acquisitions

(19,936

)

19,936

-

(6,867

)

6,867

-

383,397

(193,161

)

190,236

174,407

(27,086

)

147,321

Operating income (loss)

(254,401

)

257,298

2,897

(5,045

)

56,563

51,518

Financial expense

(5,835

)

-

(5,835

)

(999

)

-

(999

)

Income (loss) before income taxes

(260,236

)

257,298

(2,938

)

(6,044

)

56,563

50,519

Income taxes (benefit)

(20,688

)

8,093

(12,595

)

(9,958

)

11,884

1,926

Net income (loss)

(239,548

)

249,205

9,657

3,914

44,679

48,593

Net loss attributable to non-controlling interest

(329

)

-

(329

)

-

-

-

Net income (loss) attributable to Stratasys Ltd.

$

(239,219

)

$

249,205

$

9,986

$

3,914

$

44,679

$

48,593

Net income (loss) per ordinary share attributable to Stratasys
Ltd.

Basic

$

(4.71

)

$

0.20

$

0.08

$

0.99

Diluted

(4.77

)

0.19

0.08

0.95

Weighted average ordinary shares outstanding

Basic

51,181

51,181

49,323

49,323

Diluted

51,413

52,524

51,238

51,221

The Company considers these non-GAAP measures to be indicative of
its core operating results and facilitates a comparison of
operating results across reporting periods. The Company uses these
non-GAAP measures when evaluating its financial results as well as
for internal planning and forecasting purposes, however these
measures should not be viewed as a substitute for the Company's
GAAP results.

* Refer to the "Reconciliation of Non-GAAP Adjustments" herein for
further information regarding adjustments.

Stratasys Ltd.

Reconciliation of Non-GAAP Adjustments

(in thousands)

Three Months Ended June 30,

Six Months Ended June 30,

2015

2014

2015

2014

Net sales, products

Deferred revenue step-up

$

-

$

-

$

-

$

235

Cost of sales, products

Acquired intangible assets amortization

(12,301

)

(14,029

)

(27,206

)

(27,254

)

Other intangible assets impairment

-

-

(29,782

)

-

Non-cash stock-based compensation expense

(1,237

)

(710

)

(2,462

)

(1,214

)

Reorganization and other related costs

(2,437

)

-

(2,437

)

-

(15,975

)

(14,739

)

(61,887

)

(28,468

)

Cost of sales, services

Non-cash stock-based compensation expense

(560

)

(324

)

(1,168

)

(732

)

Reorganization and other related costs

(75

)

-

(75

)

-

Merger and acquisition related expense

(206

)

(16

)

(1,007

)

(42

)

(841

)

(340

)

(2,250

)

(774

)

Research and development, net

Non-cash stock-based compensation expense

(1,506

)

(885

)

(3,374

)

(1,823

)

Reorganization and other related costs

(617

)

-

(617

)

-

Merger and acquisition related expense

(893

)

(433

)

(1,842

)

(990

)

(3,016

)

(1,318

)

(5,833

)

(2,813

)

Selling, general and administrative

Acquired intangible assets amortization

(5,684

)

(5,507

)

(12,140

)

(10,871

)

Non-cash stock-based compensation expense

(6,261

)

(5,159

)

(12,320

)

(10,045

)

Merger and acquisition related expense

(5,937

)

(6,951

)

(12,842

)

(10,224

)

Reorganization and other related costs

(6,138

)

-

(6,139

)

-

Impairment charges

-

-

(13,423

)

-

(24,020

)

(17,617

)

(56,864

)

(31,140

)

Goodwill impairment

-

-

(150,400

)

-

Change in the fair value of obligations in connection with
acquisitions

Change in the fair value of obligations in connection with
acquisitions